‘No transparency’: Labor to scrap levy secretly placed on Victorian public transport fares
Summary
Victoria's Premier Ben Carroll announced the removal of a secret 1% levy added to public transport fares, which was used to fund the Suburban Rail Loop project and other infrastructure works. The levy had been in place since January 2025 but was criticized for lack of transparency, and the government has not yet explained how it will cover the lost funding.Key Facts
- A 1% annual levy on public transport fares in Victoria was secretly added in January 2025 to help pay for the Suburban Rail Loop and other projects.
- Premier Ben Carroll declared the levy would be abolished because it was introduced without transparency.
- The levy was expected to raise about $8 billion over 37 years, with $4.8 billion going to the first stage of the Suburban Rail Loop (SRL East).
- The Suburban Rail Loop is planned to cost $50 billion in total and would connect Cheltenham, Box Hill, Melbourne Airport, and other areas.
- The first stage of the loop (26 km from Cheltenham to Box Hill) is due to open by 2035 and is estimated to cost around $33.3 billion.
- The government did not inform the public about the levy when announcing its funding in 2024.
- Premier Carroll was not part of the decision to introduce the levy but is now focused on transparency and accountability.
- The government has not detailed how it will cover the revenue shortfall after scrapping the levy but plans to reduce project costs by $2 billion.
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